Genesis Funds selling AZ KLIMA to ČEZ ESCO

Genesis Capital

ČEZ ESCO, part of the ČEZ Group, agreed with Genesis Private Equity Fund (GPEF II) to acquire the majority share in AZ KLIMA. Minority shareholders will sell their part alongside the majority owner and ČEZ ESCO will thus become the sole owner of the company providing complex services in technical facility management, ventilation and air-conditioning. The transaction is subject to the signing of contractual documentation and approval by the Office for the Protection of Competition.

GPEF II held the majority share in AZ KLIMA for five years during which the sales of the company grew by 50% and the firm cemented its leading position in the market. “The example of AZ KLIMA demonstrates again the good results that can be achieved by putting together our capital resources with top quality management. Together, we succeeded in making the company grow even in a situation where external conditions were far from favourable. The new owner will take over a company with healthy foundations, broad spectrum of customers and potential for further growth,” says Jan Tauber, Managing Partner of Genesis Capital, the local advisor to Genesis Private Equity Funds,when assessing the transaction.BDO Advisory served as advisor to the selling party (GPEF II) during the transaction.

“The acquisition of AZ KLIMA fits well with our strategy – we want to grow both organically and through acquisitions of the best companies active in fields related to energy and energy savings,” says Kamil Čermák, CEO of ČEZ ESCO, adding: “AZ KLIMA is No. 1 player on the Czech market in the field of airconditioning and ventilation systems technology, boasting over 4,000 reference projects. We have already cooperated with AZ KLIMA prior to the acquisition as ventilation and air-conditioning are something our clients often have to deal with.”

Executive director and chairman of the Board of Directors of AZ KLIMA Karel Břenek is also satisfied with the selection of the new owner: “I am pleased that the new owner of AZ KLIMA is a strong company with a broad range of services going beyond the classical electricity market. Through this transaction, ČEZ ESCO acquires a company that became the top player on the ventilation and air-conditioning market, also thanks to the partnership with GPEF II. AZ KLIMA undoubtedly has further potential for growth, and I am sure this will be further developed following the incorporation of our company into ČEZ Group.”

The story of AZ KLIMA is a classic example of a successful succession within the company. It was founded in 1992 by Miroslav Čížek, who was 38 at that time, as a company focusing in particular on detailed design activities. Two years later, the company merged with Potrubí Milovice and thus extended its portfolio to manufacturing of piping and accessories. Jaroslav Jánský became the second partner in AZ KLIMA.

After almost twenty years from founding of AZ KLIMA, both partners decided to sell a majoritystake in the company to a financial investor for a temporary period in order to prepare the firm for a new strategic owner. GPEF II acquired a 68.5% stake in AZ KLIMA in 2011. Miroslav Čížek remained a shareholder with a 30% stake, while 1.5% of shares were acquired by the company’s management.

During the five years with GPEF II, the leading position of AZ KLIMA on the Czech ventilation and air conditioning market strengthened substantially. Despite the impact of economic cycles and alternating negative development in the construction sector on which the company depends to a large extent, both sales and profits were growing continuously. Sales in 2011 amounted to 443 million CZK while in 2015 it was already 660 million CZK. For 2016, sales are expected to reach 710 million CZK.

The transaction and change of ownership shall be completed after approval by the Office for the Protection of Competition, signature of contractual documents and settling of all other aspects related to the transaction. Both parties agreed not to disclose the transaction amount.

About AZ KLIMA a.s.

AZ KLIMA provides complex services in the area of technical facility management and supplies air-conditioning and cooling technologies for administrative, commercial, industrial and other buildings. AZ KLIMA operates on the entire territory of the Czech Republic and Slovakia and has its own extensive network of maintenance and service technicians. AZ KLIMA has experience from over four thousand projects in ventilation and cooling – an area in which the company has been one of the industry leaders over the long term. AZ KLIMA also implemented large projects for car manufacturers including Hyundai, Kia, Škoda Auto and TPCA. AZ KLIMA is a certified supplier of ventilation and air-conditioning for ČEZ.

The company is headquartered in Brno, and the manufacturing plant is located in Milovice u Mikulova. The Slovak subsidiary has its seat in Bratislava. In 2015, the group was employing 250 people and its sales reached 660 million CZK.

ČEZ ESCO is a complex provider for the energy needs of companies, municipalities and institutions of all sizes, offering supplies of commodities, energy audits and counselling, external supply of heat and electricity, outsourcing of the operation of client´s electric devices or directly building co-generation units and installation of photo-voltaic power plants. ČEZ ESCO comprises the following companies - ČEZ Energetické služby, ČEZ ENERGO, ENESA, EVČ and ČEZ Solární.